H.B. 187

1

STATE AND LOCAL PUBLIC SAFETY 800
2 MEGAHERTZ PROJECT
3 1997 GENERAL SESSION
4 STATE OF UTAH
5 Sponsor: Blake D. Chard
6 AN ACT RELATING TO STATE INSTITUTIONS; ESTABLISHING AN INDEPENDENT
7 STATE AGENCY CALLED THE UTAH COMMUNICATIONS AGENCY NETWORK TO
8 PROVIDE FOR GOVERNMENTAL PUBLIC SAFETY COMMUNICATIONS SERVICES
9 AND FACILITIES; ALLOWING PARTICIPATION IN THE RISK MANAGEMENT FUND;
10 SPECIFYING THE POWERS AND PURPOSES OF THE NETWORK; PROVIDING
11 DEFINITIONS; ESTABLISHING THE BOARD AND EXECUTIVE COMMITTEE AND
12 ENACTING PROVISIONS FOR THEIR GOVERNANCE; PROVIDING FOR AN
13 EXECUTIVE DIRECTOR; OUTLINING THE DUTIES AND POWERS OF THE
14 EXECUTIVE DIRECTOR; PERMITTING THE CONVEYANCE OR ACQUISITION OF
15 PROPERTY BY THE NETWORK; RECOGNIZING THE PROPERTY AND FUNDS OF
16 THE NETWORK TO BE PUBLIC PROPERTY AND EXEMPT FROM TAXES;
17 PROVIDING FOR THE DISSOLUTION OF THE NETWORK, AND THE REMOVAL OF
18 A MEMBER; AUTHORIZING BONDING; ENACTING PROVISIONS RELATED TO
19 BONDING; PROVIDING FOR INVESTMENT OF NETWORK FUNDS; EXEMPTING THE
20 NETWORK FROM CERTAIN ACTS; PROVIDING FOR CERTAIN REPORTING; h PROVIDING
20a THAT THE LEGISLATURE MAY PROVIDE AN APPROPRIATION FOR THE RESERVE FUNDS FOR DEBT
20b SERVICE; ENACTING PROVISIONS RELATING TO DEBT SERVICE; h AND
21 REQUIRING THE GOVERNOR TO INCLUDE THE STATE'S PORTION OF THE
22 NETWORK'S BUDGET IN HIS BUDGET.
23 This act affects sections of Utah Code Annotated 1953 as follows:
24 AMENDS:
25 63-38-2, as last amended by Chapter 136, Laws of Utah 1996
26 ENACTS:
27 63A-4-205.5, Utah Code Annotated 1953

lilac-February 4, 1997

1 63C-7-101, Utah Code Annotated 1953
2 63C-7-102, Utah Code Annotated 1953
3 63C-7-103, Utah Code Annotated 1953
4 63C-7-201, Utah Code Annotated 1953
5 63C-7-202, Utah Code Annotated 1953
6 63C-7-203, Utah Code Annotated 1953
7 63C-7-204, Utah Code Annotated 1953
8 63C-7-205, Utah Code Annotated 1953
9 63C-7-206, Utah Code Annotated 1953
10 63C-7-207, Utah Code Annotated 1953
11 63C-7-208, Utah Code Annotated 1953
12 63C-7-209, Utah Code Annotated 1953
13 63C-7-210, Utah Code Annotated 1953
14 63C-7-211, Utah Code Annotated 1953
15 63C-7-301, Utah Code Annotated 1953
16 63C-7-302, Utah Code Annotated 1953
17 63C-7-303, Utah Code Annotated 1953
18 63C-7-304, Utah Code Annotated 1953
19 63C-7-305, Utah Code Annotated 1953
20 63C-7-306, Utah Code Annotated 1953
21 Be it enacted by the Legislature of the state of Utah:
22 Section 1. Section 63-38-2 is amended to read:
23 63-38-2. Governor to submit budget to Legislature -- Contents -- Preparation --
24 Appropriations based on current tax laws and not to exceed estimated revenues.
25 (1) (a) The governor shall, within three days after the convening of the Legislature in the
26 annual general session, submit a budget for the ensuing fiscal year by delivering it to the presiding
27 officer of each house of the Legislature together with a schedule for all of the proposed
28 appropriations of the budget, clearly itemized and classified.
29 (b) The budget message shall include a projection of estimated revenues and expenditures
30 for the next fiscal year.
31 (2) At least 34 days before the submission S [h OR PUBLIC RELEASE h] s of any budget, the
31a governor shall deliver a

lilac-February 4, 1997

Text Box

Amend on 2_goldenrod February 28, 1997 - 2 -

1 confidential draft copy of his proposed budget recommendations to the Office of the Legislative
2 Fiscal Analyst.
3 (3) (a) The budget shall contain a complete plan of proposed expenditures and estimated
4 revenues for the next fiscal year based upon the current fiscal year state tax laws and rates.
5 (b) The budget may be accompanied by a separate document showing proposed
6 expenditures and estimated revenues based on changes in state tax laws or rates.
7 (4) The budget shall be accompanied by a statement showing:
8 (a) the revenues and expenditures for the last fiscal year;
9 (b) the current assets, liabilities, and reserves, surplus or deficit, and the debts and funds
10 of the state;
11 (c) an estimate of the state's financial condition as of the beginning and the end of the
12 period covered by the budget;
13 (d) a complete analysis of lease with an option to purchase arrangements entered into by
14 state agencies;
15 (e) the recommendations for each state agency for new full-time employees for the next
16 fiscal year; which recommendation should be provided also to the State Building Board under
17 Subsection 63A-5-103(2);
18 (f) any explanation the governor may desire to make as to the important features of the
19 budget and any suggestion as to methods for the reduction of expenditures or increase of the state's
20 revenue; and
21 (g) the information detailing certain regulatory fee increases required by Section
22 63-38-3.2.
23 (5) The budget shall include an itemized estimate of the appropriations for:
24 (a) the Legislative Department as certified to the governor by the president of the Senate
25 and the speaker of the House;
26 (b) the Executive Department;
27 (c) the Judicial Department as certified to the governor by the state court administrator;
28 (d) payment and discharge of the principal and interest of the indebtedness of the state of
29 Utah;
30 (e) the salaries payable by the state under the Utah Constitution or under law for the lease
31 agreements planned for the next fiscal year;

- 3 -

1 (f) other purposes that are set forth in the Utah Constitution or under law; and
2 (g) all other appropriations.
3 (6) Deficits or anticipated deficits shall be included in the budget.
4 (7) (a) (i) For the purpose of preparing and reporting the budget, the governor shall require
5 from the proper state officials, including public and higher education officials, all heads of
6 executive and administrative departments and state institutions, bureaus, boards, commissions, and
7 agencies expending or supervising the expenditure of the state moneys, and all institutions
8 applying for state moneys and appropriations, itemized estimates of revenues and expenditures.
9 The entities required by this subsection to submit itemized estimates of revenues and expenditures
10 to the governor, shall also report to the Utah Information Technology Commission created in Title
11 63C, Chapter 2, before October 30 of each year. The report to the Information Technology
12 Commission shall include the proposed information technology expenditures and objectives, the
13 proposed appropriation requests and other sources of revenue necessary to fund the proposed
14 expenditures and an analysis of:
15 (A) the entity's need for appropriations for information technology;
16 (B) how the entity's development of information technology coordinates with other state
17 or local government entities;
18 (C) any performance measures used by the entity for implementing information
19 technology goals; and
20 (D) any efforts to develop public/private partnerships to accomplish information
21 technology goals.
22 (ii) (A) The governor may also require other information under these guidelines and at
23 times as the governor may direct.
24 (B) These guidelines may include a requirement for program productivity and performance
25 measures, where appropriate, with emphasis on outcome indicators.
26 (b) The estimate for the Legislative Department as certified by the presiding officers of
27 both houses shall be included in the budget without revision by the governor. Before preparing
28 the estimates for the Legislative Department, the Legislature shall report to the Information
29 Technology Commission the proposed information technology expenditures and objectives, the
30 proposed appropriation requests and other sources of revenue necessary to fund the proposed
31 expenditures, including an analysis of:

- 4 -

1 (i) the Legislature's implementation of information technology goals;
2 (ii) any coordination of information technology with other departments of state and local
3 government;
4 (iii) any efforts to develop public/private partnerships to accomplish information
5 technology goals; and
6 (iv) any performance measures used by the entity for implementing information
7 technology goals.
8 (c) The estimate for the Judicial Department, as certified by the state court administrator,
9 shall also be included in the budget without revision, but the governor may make separate
10 recommendations on it. Before preparing the estimates for the Judicial Department, the state court
11 administrator shall report to the Information Technology Commission the proposed information
12 technology expenditures and objectives, the proposed appropriation requests and other sources of
13 revenue necessary to fund the proposed expenditures, including an analysis of:
14 (i) the Judicial Department's information technology goals;
15 (ii) coordination of information technology statewide between all courts;
16 (iii) any efforts to develop public/private partnerships to accomplish information
17 technology goals; and
18 (iv) any performance measures used by the entity for implementing information
19 technology goals.
20 (d) Before preparing the estimates for the State Office of Education, the state
21 superintendent shall report to the Information Technology Commission the proposed information
22 technology expenditures and objectives, the proposed appropriation requests and other sources of
23 revenue necessary to fund the proposed expenditures, including an analysis of:
24 (i) the Office of Education's information technology goals;
25 (ii) coordination of information technology statewide between all public schools;
26 (iii) any efforts to develop public/private partnerships to accomplish information
27 technology goals; and
28 (iv) any performance measures used by the Office of Education for implementing
29 information technology goals.
30 (e) Before preparing the estimates for the state system of Higher Education, the
31 commissioner shall report to the Information Technology Commission the proposed information

- 5 -

1 technology expenditures and objectives, the proposed appropriation requests and other sources of
2 revenue necessary to fund the proposed expenditures, including an analysis of:
3 (i) Higher Education's information technology goals;
4 (ii) coordination of information technology statewide within the state system of higher
5 education;
6 (iii) any efforts to develop public/private partnerships to accomplish information
7 technology goals; and
8 (iv) any performance measures used by the state system of higher education for
9 implementing information technology goals.
10 (f) The governor may require the attendance at budget meetings of representatives of
11 public and higher education, state departments and institutions, and other institutions or individuals
12 applying for state appropriations.
13 (g) The governor may revise all estimates, except those relating to the Legislative
14 Department, the Judicial Department, and those providing for the payment of principal and interest
15 to the state debt and for the salaries and expenditures specified by the Utah Constitution or under
16 the laws of the state.
17 (8) The total appropriations requested for expenditures authorized by the budget may not
18 exceed the estimated revenues from taxes, fees, and all other sources for the next ensuing fiscal
19 year.
20 (9) If any item of the budget as enacted is held invalid upon any ground, the invalidity
21 does not affect the budget itself or any other item in it.
22 (10) (a) In submitting the budget for the Departments of Health and Human Services, the
23 governor shall consider a separate recommendation in his budget for funds to be contracted to:
24 (i) local mental health authorities under Section 17A-3-606;
25 (ii) local substance abuse authorities under Section 62A-8-110.5;
26 (iii) area agencies on aging under Section 62A-3-104.2;
27 (iv) programs administered directly by and for operation of the Divisions of Mental
28 Health, Substance Abuse, and Aging and Adult Services; and
29 (v) local health departments under Title 26A, Chapter 1.
30 (b) In his budget recommendations under Subsections (a)(i), (ii), and (iii), the governor
31 shall consider an amount sufficient to grant local health departments, local mental health

- 6 -

1 authorities, local substance abuse authorities, and area agencies on aging the same percentage
2 increase for wages and benefits that he includes in his budget for persons employed by the state.
3 (c) If the governor does not include in his budget an amount sufficient to grant the increase
4 described in Subsection (b), he shall include a message to the Legislature regarding his reason for
5 not including that amount.
6 (11) (a) In submitting the budget for the Division of Services for People with Disabilities
7 within the Department of Human Services, the governor shall consider an amount sufficient to
8 grant employees of private nonprofit corporations that contract with that division, the same
9 percentage increase for cost-of-living that he includes in his budget for persons employed by the
10 state.
11 (b) If the governor does not include in his budget an amount sufficient to grant the increase
12 described in Subsection (a), he shall include a message to the Legislature regarding his reason for
13 not including that amount.
14 (12) The governor shall include the projected revenues and expenditures for collecting the
15 uniform fee and other motor vehicle fees under Section 59-2-406 in the 1996-97 fiscal year budget.
16 (13) (a) The Families, Agencies, and Communities Together Council may propose to the
17 governor under Subsection 63-75-4(3)(e) a budget recommendation for collaborative service
18 delivery systems operated under Section 63-75-6.5.
19 (b) The Legislature may, through a specific program schedule, designate funds
20 appropriated for collaborative service delivery systems operated under Section 63-75-6.5.
21 (14) The governor shall include in his budget the state's portion of the budget for the Utah
22 Communications Agency Network established in Title 63C, Chapter 7.
23 Section 2. Section 63A-4-205.5 is enacted to read:
24 63A-4-205.5. Risk management -- Coverage of the Utah Communications Agency
25 Network.
26 The Utah Communications Agency Network established under authority of Title 63C,
27 Chapter 7, may participate in the Risk Management Fund.
28 Section 3. Section 63C-7-101 is enacted to read:
29 CHAPTER 7. UTAH COMMUNICATIONS AGENCY NETWORK ACT
30 Part 1. General Provisions
31 63C-7-101. Title.

- 7 -

1 This chapter is known as the "Utah Communications Agency Network Act."
2 Section 4. Section 63C-7-102 is enacted to read:
3 63C-7-102. Purpose.
4 The purpose of this chapter is to establish an independent state agency and a board and
5 executive committee to administer the creation, administration, and maintenance of the Utah
6 Communications Agency Network to provide public safety communications services and facilities
7 on a regional or statewide basis for the benefit and use of public agencies and state and federal
8 agencies.
9 Section 5. Section 63C-7-103 is enacted to read:
10 63C-7-103. Definitions.
11 As used in this chapter:
12 (1) "Board" means the Utah Communications Agency Network Board created in Section
13 63C-7-201.
14 (2) "Bonds" means bonds, notes, certificates, debentures, contracts, lease purchase
15 agreements, or other evidences of indebtedness or borrowing issued or incurred by the Utah
16 Communications Agency Network pursuant to this chapter.
17 (3) "Communications network" means a regional or statewide public safety governmental
18 communications network and related facilities, including real property, improvements, and
19 equipment necessary for the acquisition, construction, and operation of the services and facilities.
20 (4) "Effective date" means the first date after which the Utah Communications Agency
21 Network is officially created and shall be the first date after which:
22 (a) at least ten public agencies have submitted to the Utah Communications Agency
23 Network office the membership resolutions required to become a member; and
24 (b) the governor has appointed the four state representatives to the executive committee.
25 (5) "Executive Committee" means the administrative body of the Utah Communications
26 Agency Network created in Section 63C-7-205.
27 (6) "Lease" means any lease, lease purchase, sublease, operating, management, or similar
28 agreement.
29 (7) "Member" means a public agency which:
30 (a) adopts a membership resolution to be included within the Utah Communications
31 Agency Network; and

- 8 -

1 (b) submits an originally executed copy of an authorizing resolution to the Utah
2 Communications Agency Network office.
3 (8) "Member representative" means a person or that person's designee appointed by the
4 governing body of each member.
5 (9) "Public agency" means any political subdivision of the state, including cities, towns,
6 counties, school districts, and special districts dispatched by a public safety answering point.
7 (10) "Public safety answering point" means an organization, entity, or combination of
8 entities which have joined together to form a central answering point for the receipt, management,
9 and dissemination to the proper responding agency, of emergency and nonemergency
10 communications, including 911 calls, police, fire, emergency medical, transportation, parks,
11 wildlife, corrections, and any other governmental communications.
12 (11) "State" means the state of Utah.
13 (12) "State representative" means:
14 (a) the four appointees of the governor or their designees; and
15 (b) the Utah State Treasurer or his designee.
16 Section 6. Section 63C-7-201 is enacted to read:
17 Part 2. The Utah Communications Agency Network and the Board.
18 63C-7-201. Establishment of the Utah Communications Agency Network and the
19 board.
20 (1) There is established the Utah Communications Agency Network, formerly the Utah
21 Wireless Interagency Network, created by executive order of the governor on June 6, 1996. The
22 Utah Communications Agency Network shall assume the operations of the Utah Wireless
23 Interagency Network on May h [ 1 ] 4 h , 1997, and shall perform the functions as provided in this
23a chapter.
24 (2) The Utah Communications Agency Network is an independent state agency and not
25 a division within any other department of the state.
26 (3) The initial offices of the Utah Communications Agency Network shall be in Salt Lake
27 City, but branches of the office may be established in other areas of the state upon approval of the
28 board.
29 (4) (a) As soon after the effective date as possible, the state representatives shall schedule
30 an organizational meeting date and shall give written notice of the time and location of the
31 organizational meeting to the governing bodies of h [each of the ] KNOWN PROSPECTIVE h
31a members.

lilac-February 4, 1997

- 9 -

1 (b) At the organizational meeting:
2 (i) the board shall be organized as provided in Section 63C-7-203;
3 (ii) bylaws shall be adopted; and
4 (iii) the executive committee shall be established as provided in Section 63C-7-205.
5 Section 7. Section 63C-7-202 is enacted to read:
6 63C-7-202. Powers of the Utah Communications Agency Network.
7 The Utah Communications Agency Network shall have the power to:
8 (1) sue and be sued in its own name;
9 (2) have an official seal and power to alter that seal at will;
10 (3) make and execute contracts and all other instruments necessary or convenient for the
11 performance of its duties and the exercise of its powers and functions under this chapter S , INCLUDING
11a CONTRACTS WITH PRIVATE COMPANIES LICENSED UNDER TITLE 26, CHAPTER 8, EMERGENCY
11b MEDICAL SERVICES SYSTEM ACT s ;
12 (4) own, acquire, construct, operate, maintain, and repair a communications network, and
13 dispose of any portion of it;
14 (5) borrow money and incur indebtedness;
15 (6) issue bonds as provided in this chapter;
16 (7) enter into agreements with public agencies, the state, and federal government to
17 provide communications network services on terms and conditions it considers to be in the best
18 interest of its members;
19 (8) acquire, by gift, grant, purchase, or by exercise of eminent domain, any real property
20 or personal property in connection with the acquisition and construction of a communications
21 network and all related facilities and rights-of-way which it owns, operates, and maintains;
22 (9) contract with other public agencies, the state, or federal government to provide public
23 safety communications services in excess of those required to meet the needs or requirements of
24 its members and the state and federal government if:
25 (a) it is determined by the executive committee to be necessary to accomplish the purposes
26 and realize the benefits of this chapter; and
27 (b) any excess is sold to other public agencies, the state, or federal government and is sold
28 on terms that assure that the cost of providing the excess service will be received by the Utah
29 Communications Agency Network; and
30 (10) perform all other duties authorized by this chapter.
31 Section 8. Section 63C-7-203 is enacted to read:

Text Box

Amend on 2_goldenrod February 28, 1997 - 10 -

1 63C-7-203. Establishment of the Utah Communications Agency Network Board --
2 Quorum -- Terms -- Officers -- Vacancies -- Expenses and per diem.
3 (1) There is created the Utah Communications Agency Network Board.
4 (2) The board is comprised of one member representative selected by each member, and
5 the state representatives selected as provided in Subsection 63C-7-205(2). Each member
6 representative shall serve until removed for any reason and replaced by the governing body of the
7 member.
8 (3) The chair and secretary of the executive committee shall also serve as the chair and
9 secretary of the board.
10 Section 9. Section 63C-7-204 is enacted to read:
11 63C-7-204. Powers of the board.
12 The board shall:
13 (1) adopt bylaws by a majority vote of its members which vote of both member
14 representatives or state representatives may be made by proxy as prescribed in the bylaws;
15 (2) elect ten member representatives to the executive committee, except that the state
16 representatives are not permitted to vote in that election;
17 (3) recommend to the executive committee broad policies for the long-term construction
18 and operation of the communications network; and
19 (4) dissolve the Utah Communications Agency Network as provided in Section
20 63C-7-209.
21 Section 10. Section 63C-7-205 is enacted to read:
22 63C-7-205. Executive committee established -- Terms -- Vacancies.
23 (1) The executive committee shall consist of the following 15 individuals:
24 (a) ten member representatives elected by the board at its annual meetings; and
25 (b) five state representatives.
26 (2) (a) Four of the state representatives shall be appointed by the governor, with two
27 appointed initially for two years and two for four years. Successor state representatives shall each
28 serve for four years.
29 (b) The fifth state representative shall be the Utah State Treasurer, who shall serve ex
30 officio, or his designee.
31 (c) A vacancy on the executive committee for a state representative shall be filled for the

- 11 -

1 unexpired term by appointment by the governor.
2 (3) (a) Five of the initial member representatives of the executive committee elected by
3 the board shall serve for two years and five shall serve for four years. Successor member
4 representatives of the executive committee shall each serve for a term of four years, so that the
5 term of office of five member representatives expires every two years.
6 (b) The member representatives of the executive committee shall be removable, with or
7 without cause, by a majority vote of the board. A vacancy on the executive committee for a
8 member representative shall be filled for the unexpired term by a majority of the remaining
9 member representatives of the executive committee.
10 (4) The executive committee shall elect annually one of its members as chair.
11 (5) The executive committee shall meet on an as-needed basis and as provided in the
12 bylaws.
13 (6) The executive committee shall also elect a vice chair, secretary, and treasurer to
14 perform those functions provided in the bylaws.
15 (a) The vice chair shall be a member of the executive committee.
16 (b) The secretary and treasurer need not be members of the executive committee, but shall
17 not have voting powers if they are not members of the executive committee.
18 (c) The offices of chair, vice chair, secretary, and treasurer shall be held by separate
19 individuals.
20 (7) Each member representative and state representative shall have one vote, including the
21 chair, at all meetings of the executive committee.
22 (8) Nine members of the executive committee constitute a quorum. A vote of a majority
23 of the quorum at any meeting of the executive committee is necessary to take action on behalf of
24 the executive committee.
25 Section 11. Section 63C-7-206 is enacted to read:
26 63C-7-206. Executive committee -- Powers and duties.
27 The executive committee shall:
28 (1) manage the affairs and business of the Utah Communications Agency Network
29 consistent with this chapter;
30 (2) appoint an executive director to administer the Utah Communications Agency
31 Network;

- 12 -

1 (3) receive and act upon reports covering the operations of the communications network
2 and funds administered by the Utah Communications Agency Network;
3 (4) ensure that the communications network and funds are administered according to law;
4 (5) examine and approve an annual operating budget for the Utah Communications
5 Agency Network;
6 h [(6) serve as investment trustees of any funds of the Utah Communications Agency
7 Network; ] h
8 h [(7) ] (6) h receive and act upon recommendations of the chair;
9 h [(8) ] (7) h recommend to the governor and Legislature any necessary or desirable
9a changes in the
10 statutes governing the communications network;
11 h [(9) ] (8) h develop broad policies for the long-term operation of the Utah
11a Communications
12 Agency Network for the performance of its functions;
13 h [(10) ] (9) h make and execute contracts and other instruments on behalf of the Utah
14 Communications Agency Network, including agreements with members and other entities;
15 h [(11) ] (10) h authorize the borrowing of money, the incurring of indebtedness, and the
15a issuance of
16 bonds as provided in this chapter;
17 h [(12) ] (11) h adopt rules consistent with this chapter for the management of the
17a communications
18 network in order to carry out the purposes of this chapter, and perform all other acts necessary for
19 the administration of the communications network;
20 h [(13) ] (12) h exercise the powers and perform the duties conferred on it by this chapter;
20a and
21 h [(14) ] (13) h provide for audits of the Utah Communications Agency Network.
22 Section 12. Section 63C-7-207 is enacted to read:
23 63C-7-207. Executive director -- Powers and duties.
24 The executive director shall:
25 (1) act as the executive officer of the Utah Communications Agency Network;
26 (2) administer the various acts, systems, plans, programs, and functions assigned to the
- 13 -

lilac-February 4, 1997

27 office;
28 (3) with the approval of the executive committee, develop and promulgate administrative
29 rules which are within the authority granted by this title for the administration of the Utah
30 Communications Agency Network;
31 (4) recommend to the executive committee any changes in the statutes affecting the Utah























- 13a -

lilac-February 4, 1997

1 Communications Agency Network;
2 (5) recommend to the executive committee an annual administrative budget covering
3 administration, management, and operations of the communications network and, upon approval
4 of the executive committee, direct and control the subsequent expenditures of the budget; and
5 (6) within the limitations of the budget, employ staff personnel, consultants, and legal
6 counsel to provide professional services and advice regarding the administration of the Utah
7 Communications Agency Network.
8 Section 13. Section 63C-7-208 is enacted to read:
9 63C-7-208. Property and funds of the Utah Communications Agency Network
10 declared public property -- Exemption from taxes -- Alternative agreement with public body.
11 (1) The property and funds of the Utah Communications Agency Network are declared
12 to be public property used for essential public and governmental purposes.
13 (2) The property and the Utah Communications Agency Network are exempt from all
14 taxes and special assessments of any public body. This tax exemption does not apply to any
15 portion of a project used for a profit-making enterprise.
16 Section 14. Section 63C-7-209 is enacted to read:
17 63C-7-209. Term of the Utah Communications Agency Network -- Dissolution --
18 Withdrawal.
19 (1) (a) The Utah Communications Agency Network may be dissolved by a vote of 3/4 of
20 all the members of the board or by an act of the Legislature.
21 (b) Title to all assets of the Utah Communications Agency Network upon its dissolution
22 shall revert to the members and the state pro rata, based upon the total amount of moneys paid to
23 the Utah Communications Agency Network by each member or the state for services provided to
24 each by the communications network.
25 (c) The board is authorized to:
26 (i) take any necessary action to dissolve the Utah Communications Agency Network; and
27 (ii) dispose of the property of the Utah Communications Agency Network upon its
28 dissolution as provided in Subsection (1)(b).
29 (2) (a) Each member may, at any time, withdraw as a member of the Utah
30 Communications Agency Network by delivering to the executive committee a written notice of
31 withdrawal which has been approved by the governing body of the member, except that a member

- 14 -

1 may not withdraw from the Utah Communications Agency Network at any time during which it
2 has an outstanding payment obligation to the Utah Communications Agency Network as a result
3 of having entered into a service contract, lease, or other financial obligation.
4 (b) Except as provided in Subsection (2)(a), the executive committee shall delete the
5 petitioning member from the membership of the Utah Communications Agency Network as of the
6 date of the executive committee's receipt of the member's notice of withdrawal. The executive
7 committee may not include a member who has given notice of withdrawal in any future obligation
8 of the Utah Communications Agency Network.
9 Section 15. Section 63C-7-210 is enacted to read:
10 63C-7-210. Exemption from certain acts.
11 (1) The Utah Communications Agency Network is exempt from:
12 (a) Title 63, Chapter 38, Budgetary Procedures Act;
13 (b) Title 63A, Utah Administrative Services Code, except as provided in Section
14 63A-4-205.5;
15 (c) Title 63, Chapter 56, Utah Procurement Code;
16 (d) Title 63, Chapter 46b, Administrative Procedures Act; and
17 (e) Title 67, Chapter 19, Utah State Personnel Management Act.
18 (2) The board shall adopt budgetary procedures, accounting, procurement, and personnel
19 policies substantially similar to those from which they have been exempted in Subsection (1).
20 Section 16. Section 63C-7-211 is enacted to read:
21 63C-7-211. Annual report to governor and Legislature -- Contents -- Audit by state
22 auditor -- Reimbursement for costs.
23 (1) The Utah Communications Agency Network shall, following the close of each fiscal
24 year, submit an annual report of its activities for the preceding year to the governor and the
25 Legislature. Each report shall set forth a complete operating and financial statement of the agency
26 during the fiscal year it covers.
27 (2) The state auditor shall at least once in each year audit the books and accounts of the
28 Utah Communications Agency Network or shall contract with an independent certified public
29 accountant for this audit. The audit shall include a review of the procedures adopted under the
30 requirements of Subsection 67C-7-210(2) and a determination as to whether the board has
31 complied with the requirements of Subsection 67C-7-210(2).

- 15 -

1 (3) The Utah Communications Agency Network shall reimburse the state auditor from
2 available moneys of the Utah Communications Agency Network for the actual and necessary costs
3 of that audit.
4 Section 17. Section 63C-7-301 is enacted to read:
5 Part 3. Bonding Authorized
6 63C-7-301. Bond authorized -- Payment -- Security -- Liability -- Purpose --
7 Exemption from certain taxes.
8 (1) The Utah Communications Agency Network may:
9 (a) issue bonds from time to time for any of its corporate purposes provided in Section
10 63C-7-102;
11 (b) issue refunding bonds for the purpose of paying or retiring bonds previously issued by
12 it;
13 (c) issue bonds on which the principal and interest are payable:
14 (i) exclusively from the income, purchase or lease payments, and revenues of all or a
15 portion of the communications network; or
16 (ii) from its revenues generally.
17 (2) Any bonds issued by the Utah Communications Agency Network may be additionally
18 secured by a pledge of any loan, lease, grant, agreement, or contribution, in whole or in part, from
19 the federal government or other source, or a pledge of any income or revenue of the Utah
20 Communications Agency Network.
21 (3) The officers of the Utah Communications Agency Network and any person executing
22 the bonds are not liable personally on the bonds.
23 (4) (a) The bonds and other obligations of the Utah Communications Agency Network are
24 not a debt of any member or state representative of the Utah Communications Agency Network,
25 and do not constitute indebtedness for purposes of any constitutional or statutory debt limitation
26 or restrictions.
27 (b) The face of the bonds and other obligations shall state the provisions of Subsection
28 (4)(a).
29 (5) Any bonds of the Utah Communications Agency Network shall be revenue obligations,
30 payable solely from the proceeds, revenues, or purchase and lease payments received by the Utah
31 Communications Agency Network for the communications network.

- 16 -

1 (6) The full faith and credit of any member or state representative may not be pledged
2 directly or indirectly for the payment of the bonds.
3 (7) A member or state representative may not incur any pecuniary liability under this
4 chapter until it enters into a service contract, lease, or other financing obligation with the Utah
5 Communications Agency Network. Once a member enters into a service contract, lease, or other
6 financing obligation with the Utah Communications Agency Network, the member shall be
7 obligated to the Utah Communications Agency Network as provided in that contract, lease, or
8 financing obligation.
9 (8) A bond or obligation may not be made payable out of any funds or properties other
10 than those of the Utah Communications Agency Network.
11 (9) Bonds of the Utah Communications Agency Network are:
12 (a) declared to be issued for an essential public and governmental purpose by public
13 instrumentalities; and
14 (b) together with interest and income, exempt from all taxes, except the corporate franchise
15 tax.
16 (10) The provisions of this chapter exempting the properties of the Utah Communications
17 Agency Network and its bonds and interest and income on them from taxation shall be considered
18 part of the contract for the security of bonds and have the force of contract, by virtue of this part
19 and without the necessity of this being restated in the bonds, between the bondholders, including
20 all transferees of the bonds, and the Utah Communications Agency Network and the state.
21 S [(11) (a) Notwithstanding the provisions of this section, prior to the issuance of the initial
22 bonds, the Utah Communications Agency Network shall provide in writing its initial plan of
23 financing for approval by concurrent resolution of the Legislature.
24 (b) The initial plan of financing shall include the information required in Subsections
25 63C-7-306(2)(a) through (g) and may include other provisions and information the Utah
Text Box

Amend on 2_goldenrod February 28, 1997 26 Communications Agency Network considers appropriate.] s
27 Section 18. Section 63C-7-302 is enacted to read:
28 63C-7-302. Bonds to be authorized by resolution -- Form -- Sale -- Negotiability --
29 Validity presumed.
30 (1) Bonds of the Utah Communications Agency Network shall:
31 (a) be authorized by resolution of the executive committee and may be issued in one or

- 17 -

1 more series;
2 (b) bear dates, mature, bear interest rates, be in denominations, be either coupon or
3 registered, carry conversion or registration privileges, have rank or priority, be executed, and be
4 payable; and
5 (c) be subject to terms of redemption, with or without premium, as the resolution or its
6 trust indenture provides.
7 (2) The bonds may bear interest at a fixed or variable interest rate as the resolution
8 provides. The resolution may establish a method, formula, or index pursuant to which the interest
9 rate on the bonds may be determined from time to time.
10 (3) In connection with the bonds, and on behalf of the Utah Communications Agency
11 Network, the executive committee may authorize and enter into agreements or other arrangements
12 with financial, banking, and other institutions for letters of credit, standby letters of credit, surety
13 bonds, reimbursement agreements, remarketing agreements, indexing agreements, tender agent
14 agreements, and other agreements to secure the bonds, to enhance the marketability and
15 creditworthiness of the bonds, to determine a fixed or variable interest rate on the bonds, and to
16 pay from any legally available source, including the proceeds of the bonds, of fees, charges, and
17 other amounts coming due with respect to any such agreements.
18 (4) The bonds may be sold at public or private sale in a manner and at prices, either at, in
19 excess of, or below par value as provided by resolution of the executive committee.
20 (5) If members or officers of the Utah Communications Agency Network whose signatures
21 appear on bonds or coupons cease to be members or officers before the delivery of the bonds, their
22 signatures are valid and sufficient for all purposes.
23 (6) Any bonds issued under this part are fully negotiable.
24 (7) In any suit, action, or proceeding involving the validity or enforceability of any bond
25 of the Utah Communications Agency Network or the security for it, any bond reciting in substance
26 that it has been issued by the Utah Communications Agency Network to aid in financing the
27 communications network shall be conclusively considered to have been issued for such purposes,
28 and the communications network shall be conclusively considered to have been planned, located,
29 and carried out in accordance with this part.
30 Section 19. Section 63C-7-303 is enacted to read:
31 63C-7-303. Bonds and other obligations -- Additional powers of the Utah

- 18 -

1 Communications Agency Network.
2 In connection with the issuance of bonds or the incurring of obligations under leases, and
3 in order to secure the payment of bonds or obligations, the Utah Communications Agency
4 Network, in addition to its other powers, may:
5 (1) pledge all or any part of its gross or net rents, fees, or revenues to which its right then
6 exists or may accrue in the future;
7 (2) mortgage all or any part of its real or personal property owned or acquired in the future;
8 (3) covenant against:
9 (a) pledging all or any part of its rents, fees, and revenues;
10 (b) mortgaging all or any part of its real or personal property to which its right or title then
11 exists or accrues in the future;
12 (c) permitting any lien on its revenues or property;
13 (d) extending the time for the payment of its bonds or interest on them;
14 (e) the use and disposition of the moneys held in the funds in Subsection (7); and
15 (f) the use, maintenance, and replacement of any or all of its real or personal property;
16 (4) covenant as to:
17 (a) bonds to be issued;
18 (b) the issuance of bonds in escrow or otherwise;
19 (c) the use and disposition of the bond proceeds;
20 (d) the insurance to be carried on the property in Subsection (3)(f) and the use and
21 disposition of insurance moneys; and
22 (e) the rights, liabilities, powers, and duties arising upon its breach of any covenant,
23 condition, or obligation;
24 (5) provide for the replacement of lost, destroyed, or mutilated bonds;
25 (6) covenant for the redemption of the bonds and provide the terms and conditions for their
26 redemption;
27 (7) create or authorize the creation of special funds for moneys held for construction or
28 operating costs, debt service, reserves, or other purposes; and
29 (8) prescribe the procedure, if any, by which the terms of any contract with bondholders
30 may be amended or abrogated, the number of bondholders of outstanding bonds which must
31 consent to the action, and the manner in which consent shall be given;

- 19 -

1 (9) covenant and prescribe as to events of default and terms and conditions upon which
2 any or all of its bonds or obligations shall become or may be declared due before maturity, and as
3 to the terms and conditions upon which such declaration and its consequences may be waived;
4 (10) vest in any obligee of the Utah Communications Agency Network or any specified
5 proportion of them the right:
6 (a) to enforce the payment of bonds or any covenants securing or relating to the bonds;
7 (b) after default by the Utah Communications Agency Network to:
8 (i) take possession of and use, operate, and manage any facilities or any part of it or any
9 funds connected with the facilities and funds, and collect the revenues arising from them; and
10 (ii) dispose of the facilities and funds in accordance with the agreement with the Utah
11 Communications Agency Network;
12 (11) provide the:
13 (a) powers and duties of an obligee and limit the obligee's liabilities; and
14 (b) terms and conditions upon which the obligees may enforce any covenant or rights
15 securing or relating to the bonds;
16 (12) exercise all or any part or combination of the powers granted in this chapter;
17 (13) perform any acts necessary, convenient, or desirable to secure its bonds; and
18 (14) make any covenants or perform any acts calculated to make the bonds more
19 marketable.
20 Section 20. Section 63C-7-304 is enacted to read:
21 63C-7-304. Reserve funds for debt service.
22 (1) To assure the continued operation and solvency of the Utah Communications Agency
23 Network for the carrying out of its purpose, the Utah Communications Agency Network may
24 establish reserve funds necessary to secure the payment of debt service on its bonds.
25 (2) The resolution authorizing the issuance of the bonds shall specify the minimum amount
26 that is required to be on deposit in the reserve funds.
27 (3) The chair shall annually, on or before December 1, certify to the governor, the director
28 of finance, and to each member the amount, if any, required to restore the funds to their required
29 funding levels.
30 (4) h (a) h The governor may request from the Legislature an appropriation h [ of 1/2 ] h of
30a the amount
31 certified in Subsection (3) to restore the reserve funds to their required funding levels h OR TO MEET
31a ANY PROJECTED PRINCIPAL OR INTEREST PAYMENT DEFICIENCY h . Any

lilac-February 4, 1997

- 20 -

1 amount appropriated shall be repaid to the General Fund of the state h [ from 1/2 of any moneys ] h in
2 excess of the amounts which the executive committee determines will keep it self-supporting.
2a h (b) THE EXECUTIVE COMMITTEE SHALL ADJUST THE FEES OF THE MEMBERS SO THAT THE
2b STATE IS REPAID FOR THE AMOUNT APPROPRIATED IN SUBSECTION (4)(a) WITHIN 18 MONTHS
2c AFTER THE STATE HAS PAID THE DEFICIT . h
3 (5) The members are jointly responsible for 1/2 the amount certified in Subsection (3) to
4 restore the reserve funds to their required funding levels. The executive committee may request
5 from each member monies proportionate to their participation in the network to restore the funding
6 level. Any amount paid by the members shall be proportionally repaid to them from 1/2 of any
7 monies in excess of the amounts which the executive committee determines will keep it
8 self-supporting.
9 Section 21. Section 63C-7-305 is enacted to read:
10 63C-7-305. Investment of the Utah Communications Agency Network funds.
11 h [At the direction of the executive committee, ] THE STATE TREASURER SHALL INVEST h 11a all moneys held on deposit by or on behalf of
12 the Utah Communications Agency Network h [ shall be invested in accordance with the Title 51,
13 Chapter 7, State Money Management Act. ] . THE EXECUTIVE COMMITTEE MAY PROVIDE ADVICE
13a TO THE STATE TREASURER CONCERNING INVESTMENT OF THE MONEYS OF THE UTAH
13b COMMUNICATIONS AGENCY NETWORK. h
14 Section 22. Section 63C-7-306 is enacted to read:
15 63C-7-306. Publication of notice, resolution, or other proceeding -- Contest.
16 (1) The executive committee of the Utah Communications Agency Network may provide
17 for the publication of any resolution or other proceedings adopted under this chapter in a
18 newspaper of general circulation within the state.
19 (2) In case of a resolution or other proceeding providing for the issuance of bonds, the
20 executive committee may, in lieu of publishing the entire resolution or other proceeding, publish
21 a notice of bonds to be issued containing:
22 (a) the name of the issuer;
23 (b) the purpose of the issue;
24 (c) the type of bonds and the maximum principal amount which may be issued;
- 21 -

lilac-February 4, 1997

25 (d) the maximum number of years over which the bonds may mature;
26 (e) the maximum interest rate which the bonds may bear, if any;
27 (f) the maximum discount from par, expressed as a percentage of principal amount, at
28 which the bonds may be sold; and
29 (g) the times and place where a copy of the resolution or other proceeding may be
30 examined, which shall be at the principal office of the Utah Communications Agency Network
31 during regular business hours and for a period of at least 30 days after the publication of the notice.

lilac-February 4, 1997

- 21a -

1 S [(3) Title 11, Chapter 30, Utah Bond Validation Act, applies to bonds issued under this
2 part.]
2a (3) FOR A PERIOD OF 30 DAYS AFTER THE PUBLICATION, ANY PERSON IN INTEREST MAY
2b CONTEST THE LEGALITY OF THE RESOLUTION OR PROCEEDING, ANY BONDS WHICH MAY BE
2c AUTHORIZED BY THE RESOLUTION OR PROCEEDING, OR ANY PROVISION MADE FOR THE SECURITY
2d AND PAYMENT OF THE BONDS BY FILING A PLEADING WITH THE DISTRICT COURT FOR THE CITY IN
2e WHICH THE UTAH COMMUNICATIONS NETWORK MAINTAINS ITS PRINCIPAL OFFICE. s




Text Box

Amend on 2_goldenrod February 28, 1997 Legislative Review Note
as of 12-13-96 8:11 AM

A limited legal review of this bill raises no obvious constitutional or statutory concerns.

Office of Legislative Research and General Counsel

- 22 -